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CIRCULAR No

CIRCULAR No. 68/2002/TT-BTC OF AUGUST 15, 2002 ON THE IMPORT TAX EXEMPTION FOR SUPPLIES, MACHINERY AND EQUIPMENT IMPORTED FOR TRAIN CARRIAGE BUILDING

Pursuant to the Prime Minister�s Decision No. 1494/QD-TTg of November 22, 2001 on a number of development support policies for the building of train carriages by Vietnam Railway Union in the 2001-2005 period;

Consulting the opinions of the Ministry of Communications and Transport in Official Dispatch No. 1145/GTVT-TCKT of April 5, 2002, the Ministry of Trade in Official Dispatch No. 1341 TM/DT of April 11, 2002, the General Department of Customs in Official Dispatch No. 1479/TCHQ-KTTT of April 8, 2002 and Vietnam Railway Union in Official Dispatch No. 538/KH-TCKT DS of April 5, 2002;

The Ministry of Finance hereby guides the import tax exemption for special-use supplies, machinery and equipment which cannot be produced at home and are imported for train carriage building as follows:

I. SUBJECT OF APPLICATION:

Vietnam Railway Union�s enterprises which directly build new train carriages shall be exempt from import tax till the end of 2005 for the volume of special-use supplies, machinery and equipment, which cannot be produced at home and are imported for carriage building.

II. CONDITIONS FOR APPLICATION:

Imported supplies, machinery and equipment must meet the following conditions:

- Being special-use supplies, machinery and equipment on the list of special-use supplies, machinery and equipment for train carriage building, which cannot be produced at home, prescribed and announced annually by the Ministry of Communications and Transport. The list of imported special-use supplies, machinery and equipment for train carriage building, which cannot be produced at home, announced annually by the Ministry of Communications and Transport must be based on the list of equipment, supplies and raw materials�., which can be produced at home, issued by the Ministry of Planning and Investment. In cases where the supplies, machinery and equipment, which need to be imported for train carriage building, belong to special categories and cannot be produced at home, but are included in the list of equipment, supplies and raw materials, which can be produced at home, issued by the Ministry of Planning and Investment, the Ministry of Communications and Transport must reach agreement with the Ministry of Planning and Investment to promulgate a suitable list of supplies, equipment and materials imported for train carriage building;

- Being imported for building train carriages of Vietnam Railway Union;

- Being directly imported or entrusted for import by train carriage-building enterprises under Vietnam Railway Union.

III. IMPLEMENTATION ORGANIZATIONS:

1. Annually, Vietnam Railway Union shall have to work out the list of special-use supplies, equipment and machinery which need to be imported for train carriage building in compliance with the annual investment plan assigned by the Ministry of Communication and Transport and send it to the customs offices. The customs offices shall compare the list of supplies, equipment and machinery registered by Vietnam Railway Union with the list of supplies, equipment and machinery which cannot be produced at home, announced annually by the Ministry of Communications and Transport to carry out the procedures for import tax exemption for each goods lot.

2. Tax exemption procedures and dossiers:

- Import goods customs declarations;

- Import contracts;

- Contracts on entrusted importation (in case of entrusted importation);

- List of import plans approved by Vietnam Railway Union (to be submitted to the customs offices when carrying out the tax exemption procedures for the first time).

IV. TAX FINAL SETTLEMENT:

Vietnam Railway Union shall have to monitor and direct the import and use for right purposes of supplies, equipment and machinery imported for train carriage building. Annually, by the end of March 31 at the latest, the enterprises which use supplies, equipment and machinery imported for train carriage building and are exempt from import tax, shall have to sum up and send final settlement reports on the situation of importation, production and assembly in the preceding year to the customs offices (where the units conducted the import): the import volume, the volume already used for production and assembly, the volume transferred to the subsequent year, and the volume sold or not used for carriage assembly or building.

On the basis of the final settlement reports made by the enterprises, the customs offices shall assume the prime responsibility and coordinate with Tax Departments of the localities where the enterprises which directly build carriages are headquartered in inspecting and making final settlement on the use of imported supplies, machinery and equipment. All cases of using such supplies, machinery and equipment for wrong purposes shall, when being detected, have to pay the import tax arrears and fines according to law provisions.

This Circular takes effect 15 days after its signing till the end of December 31, 2005. In the course of implementation, if meeting with any troubles, units are requested to report them to the Ministry of Finance for timely guidance.

For the Minister of Finance

Vice Minister
TRUONG CHI TRUNG